When the price of pens went from $1 to $1.50, the quantity demanded of pencils changed from 50 to 75 a day. The cross-price elasticity of demand for pens (using the initial value formula) is:
A. 0.8.
B. 0.4.
C. 0.2.
D. It cannot be determined from the information provided.
Answer: D
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a. True b. False Indicate whether the statement is true or false
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